Relates to eligibility for unemployment compensation benefits

Title of bill

An act to amend the labor law, in relation to providing unemployment insurance benefits to certain part-time elected officials

Purpose of bill

: To allow elected county and municipal officials, who often work for very little, to collect unemployment insurance when they lose employment that is other than their elected position

Summary of provisions

: Section one amends section 522 of the labor law, as amended by chapter 720 of the laws of 1953, by excluding service as an elected county or municipal official from the definition of "total employment."

Section two amends section 591 of the labor law, as amended by chapter 413 of the laws of 2003, by adding that a claimant shall not be denied unemployment insurance benefits because of such claimant's service as an elected county or municipal official. A mathematical formula for the amount of benefits such claimant may receive is provided.

Section three amends subdivision one of section 591 of the labor law, as amended by chapter 466 of the laws of 1981 by adding that a claimant shall not be denied unemployment insurance benefits because of such claimant's service as an elected county or municipal official. A mathematical formula for the amount of benefits such claimant may receive is provided.

Section three defines the effective date. Section three of this legislation shall take effect when the amendments made by section two no longer are in effect as per section 10 of chapter 413 of the laws of 2003.

Justification

: Many small city and village officials as well as county officials of smaller counties serve their constituencies with little financial compensation for their duties. Often these duties require such officials to put in many hours per week for an annual stipend that only amounts to pennies per hour. As a result, dedicated officials often must hold outside, full-time employment as well.

Currently, the labor law prohibits such public servants from receiving unemployment benefits if they lose their outside full-time jobs at no fault of their own. An example of this unfortunate circumstance occurred in Remsen in Oneida County where the mayor's stipend was only $850 per year. When he lost his full-time job as a manager of a retail business he was unable to collect unemployment benefits because he earned $16.35 each week as mayor of Remsen.

The present unemployment system may deter qualified, competent individuals from running for elected office if they know that serving in the public's interest would prevent them from receiving unemployment benefits should they lose their full-time employment. This legislation is important because it not only helps to benefit local officials, but the residents of the communities in which the officials serve.

Legislative history

: 2005-06: S.4720, referred to labor

Fiscal implications

: Minimal impact, if at all, to the unemployment insurance fund. Only four or five officials are affected by unemployment every year.

Effective date

: Immediately, provided, however, that the amendments to subdivision 1 of section 591 of the labor law made by section two of this act shall be subject to the expiration and reversion of such subdivision pursuant to section 10 of chapter 413 of the laws of 2003, as amended, when upon such date the provisions of section three of this act shall take effect.